Carbamazepine is an anticonvulsant medication primarily used to treat epilepsy and bipolar disorder, as well as neuropathic pain. It works by stabilising neuronal membranes and inhibiting repetitive firing of action potentials, thereby reducing seizure activity. Clinically, it is important due to its potential side effects, such as agranulocytosis and Stevens-Johnson syndrome, which necessitate monitoring of blood counts and careful patient selection.